With new competition coming from all over the world companies are interested
in learning how to tap the power of a loyalty building program..
Loyalty programs have helped many companies keep their customers from switching
to the competition, and there are some key lessons learned from their
experiences.

Here is a blueprint with key principles for putting together a
successful loyalty building program:

Loyalty isn't created by a program, but it can be strengthened by
one. Loyalty grows out of customers' overall experiences, not just the rewards
of your loyalty program. A loyalty program cannot fix inherent problems
such as poorly trained sales people that an organization doesn't want to
address. Experience shows that an otherwise effective loyalty program
can be neutralized if the retailer doesn't deliver a satisfactory customer
experience (e.g., poor customer service). Don't begin a loyalty
program until you're sure you can deliver a good shopping experience.

Loyalty programs raise customer expectations. You can make general
promises to all of your customers, but when these promises are part of your
loyalty program, you'll be held accountable if you fail to deliver. A loyalty
program raises the bar, so don't make promises you can't keep.

In a loyalty building program, all customers are not created equal.
This is hard for many retailers to accept. We all know that all customers are
important but in the world of a loyalty building program some customers become
more important than others. Other customers still must be treated well, but
they don't get everything loyal customers do. Before kicking off a loyalty
program make sure employees buy-in into your loyalty program and understand
that it is okay to treat loyal customers a little better.